Offshore staff

SYDNEY, Australia -- Buccaneer Energy has agreed to acquire the two main productive leases in the former Cosmopolitan Unit (Cosmo) from Pioneer Natural Resources Alaska.

The company plans to develop Cosmo, an oil and gas field in 50 ft (15.2 m) water depth in the southern part of the Cook Inlet of Alaska, close to the shoreline at Anchor Point on the Kenai Peninsula. This region is ice-free during the winter.

The acquisition is in partnership with Fort Worth-based BlueCrest Energy II, with Buccaneer acquiring a 25% interest and BlueCrest 75%, although Buccaneer will assume operatorship of the project.

Development calls for two separate schemes:

• A shallow gas development (3,000 – 4,000 ft, or 914-1,219 m) to be drilled with a jackup

• A deeper oil development (6,000 – 8,000 ft, or 1,829-2,438 m) via directionally drilled wells from the shoreline.

Buccaneer plans to use the jackup Endeavour to drill an offshore well in late 2012 to further quantify the oil and gas zones.

Development should start in winter 2012 and continue through 2014. The preliminary scheme will involve drilling oil wells from the existing onshore production site and drilling offshore water injection wells for reservoir pressure maintenance.

Offshore gas wells will be drilled and tied back to the existing onshore site which will be connected to ENSTAR’s recently completed gas transportation line.

2/2/2012